Ukraine's GDP warrant swap proposal likely to get "high take-up" - Citi
Ukraine's proposal to swap $2.6 billion in GDP warrants for new "C" bonds is seen as appealing by Citi, likely attracting many holders. This move is crucial for Ukraine to address debt default issues following Russia's invasion. A key creditor group is still in discussions and will issue a statement soon.
LONDON, Dec 5 (Reuters) - Ukraine’s latest bid to swap its GDP warrants for new bonds is “significantly more appealing” than previous proposals and is likely to lure many of the holders, Citi said in a note on Friday.
Kyiv launched its offer on Monday to swap $2.6 billion in GDP-linked warrants for new “C” bonds for those who back the deal, a crucial step for the war-ravaged country to emerge from a debt default prompted by Russia’s 2022 invasion.
A key group of creditors said on Thursday that it could not yet back the plan, but said it was in discussions with the government and would issue another statement on Friday.
Citi’s emerging markets strategist Nikola Apostolov said in a note that the terms of the new offer were markedly better than earlier proposals.
“We see the “C” bonds package as significantly more attractive and would expect a high take-up among warrant holders,” Apostolov wrote.
